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MNI BRIEF: UK Retail Spending Slows As Cost Of Living Bites

(MNI) London

UK retail sales fell sharply in September, declining by 0.9% m/m after a rise of 0.4% in August. The data excluding the sale of petrol fe;; 1.2% m/m, both releases exceeding analysts expectations of a decline around 0.5%.

According to the Office for National Statistics, the latest data, combined with the outcomes seen in both July and August, means retail sales as a sector (4.9% of total GDP) will weigh on Q3 GDP to the tune of -0.04 percentage points. “Retail sales fell notably in September with retailers telling us that cost of lliving pressures are influencing consumers, particularly for sales of non-essential goods,” ONS Chief Economist Grant Fitzner said Friday.

The data was in line with the latest slide in UK consumer sentiment, which declined at the fastest pace since March 2020, and underlines how the Bank of England' near two-year policy tightening run is now starting to slow high street spending. (MNI INTERVIEW: Further UK Consumer Sentiment Dips Likely -GfK)

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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